JOHANNESBURG (miningweekly.com) – The share price of Sibanye-Stillwater rose on Thursday on the news of a deleveraging plan that explicitly excludes debt and equity raising.
Prospective deleveraging options include a streaming arrangement to raise $500-million and a process inventory financial arrangement to raise a further $100-million at the recycling operation in the US .
The share price rose 2.7% to R821 a share before settling 1.77% higher at R804 a share.
“A decision regarding these financial options will be announced shortly,” the JSE- and NYSE-listed precious metals mining company, headed by CEO Neal Froneman, said in a release to Creamer Media’s Mining Weekly Online.
Lenders recently strengthened the liquidity position of Sibanye-Stillwater by refinancing its August-maturing, $350-million revolving credit facility to a larger improved-terms 2021-maturing, $600 million facility, which the company sees as reflecting confidence in its strategy, deleveraging profile and financial outlook.
Through the inclusion of additional lenders, it could even exercise an option to increase revolving credit to $750-million.
Following the tragic seismic event of May 3, production has not yet resumed at the Masakhane mine, which produces 935 oz of gold a day, representing 20% of the Driefontein gold mine’s total daily output and 7% of the daily gold output of the South African gold operations.
A total of 5 240 oz of gold, or 0.4% of the total guided gold production of between 1.24-million ounces and 1.29-million ounces for the year ending December 31, were lost through the seismic damage, which is still being thoroughly assessed. An update will be provided once management has completed plans to repair footwall infrastructure that provides access to the western side of the Masakhane mine.
The proposed acquisition of Lonmin is proceeding as planned.
“We remain excited about the opportunity to close the Lonmin transaction, which is compelling from a strategic and a value perspective,” stated the company, which is South Africa’s largest producer of gold and the third largest producer of palladium and platinum.